New Issue: UBS sells $8.3 million partially protected bearish securities linked to Dow Industrials

By Susanna Moon

Chicago, Nov. 29 - UBS AG priced an $8.3 million issue of 0% bearish return optimization securities with partial protection due Jan. 30, 2009 linked to the Dow Jones Industrial Average, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus a positive return of 5% for each 1% drop in the index, up to a maximum gain of 23%.

If the index rises by 10% or less, the payout will be par. Investors will lose 1% for each 1% that the index increases beyond 10%.

UBS Investment Bank and UBS Financial Services Inc. are the underwriters.

Issuer:	UBS AG
Issue:	Bearish return optimization securities with partial protection
Underlying index:	Dow Jones Industrial Average
Amount:	$8,318,850
Maturity:	Jan. 30, 2009
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus a positive return of 5% for each 1% drop in the index, up to a maximum gain of 23%; par if the index increases by 10% or less; loss of 1% for every 1% the index increases beyond 10%
Initial index level:	12,958.44
Pricing date:	Nov. 27
Settlement date:	Nov. 30
Underwriters:	UBS Investment Bank, UBS Financial Services Inc.
Fees:	1.5%

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